Microsoft takes a $100-$200 loss on all Xbox Series sales

[beardedscotsman]

I remember seeing the COGS for Xbox One and it was the same as retail prices. There was no profit from COGS and then you have shipping and associated costs to get the consoles out. So there is an inherent loss. it’s likely too that advertising comes under this cost per unit too.

Xbox games take 10 to 15 USD per title sold, so there is a big push for games to sell. Xbox 360 had the highest at the time games sold at console sale it was like 2.5 or 3.5 games per console sold and I think that is likely still a record.

Consoles take time to make a profit, but subscription models with multiplayer really help. Honestly I think this is how it should remain, at least with lowering the cost of entry to home consoles vs desktop computers.

[sbuccini]

I wrote a post about the dynamics that play into console pricing and why Microsoft might have done this: https://www.stevenbuccini.com/console-wars

[312c]

Hasn't this been how Xbox has operated for 2 decades now?

[partiallypro]

Or every console until it reaches a certain maturity.

[Kukumber]

Selling products at a loss should be illegal, it's an anti-competitive practice

In fact, it is illegal, at least in some European countries, as usual, why is it ok for Microsoft?

https://europa.eu/youreurope/business/selling-in-eu/competit...

[yeneek]

It's just how this market works.

https://www.forbes.com/sites/paultassi/2021/02/03/ps5-is-bei...

[askiiart]

There's also laws like that in the US, and in most places. However, it seems this is being overlooked because it's not really for the purpose of creating a monopoly, as everyone is doing this, as it's actually just to get consumers' feet in the door to the ecosystem/platform.

[10g1k]

It's clever sales strategy: sell a weapon for $1, sell the ammunition for $1000.

[qeternity]

Most commonly known as the razors and blades model.